Key Highlights
- INTC shares climbed more than 10% following President Trump’s disclosure that Apple will collaborate with Intel on US-based chip design and manufacturing.
- Mizuho Securities increased its INTC price objective to $135 from $128 while maintaining a Neutral stance.
- New CEO Lip-Bu Tan outlined an ambitious vision to deliver a tenfold shareholder return over the next five to ten years.
- CNBC’s Jim Cramer declared Intel his “new favorite stock in this market,” emphasizing the CPU-GPU ratio benefits for agentic AI applications.
- The chipmaker has commenced manufacturing on its 18A-P process node, potentially positioning itself to secure foundry contracts from Apple.
Intel (INTC) shares experienced a significant rally exceeding 10% during Monday’s trading session, extending a strong upward trend that began late last week. INTC was changing hands near $134 at the time of observation, representing approximately a $13 gain for the day.
The catalyst emerged when President Trump revealed through social media that Apple had committed to partnering with Intel for chip design and production on American soil. This single disclosure propelled INTC to record territory and generated substantial upward momentum as the week commenced.
During the weekend, Mizuho Securities analysts revised their price objective on Intel upward from $128 to $135. While maintaining their Neutral recommendation, the firm highlighted Intel’s sophisticated packaging capabilities — specifically EMIB-T and Foveros technologies — as competitive advantages that could enable the company to secure between 10% and 15% of the advanced packaging sector over time.
New CEO Outlines Aggressive Growth Vision
CEO Lip-Bu Tan amplified investor enthusiasm during his conversation on the “No Priors” podcast. He articulated an objective of generating a tenfold return for investors within a five to ten-year timeframe, referencing his successful tenure at Cadence Design Systems as precedent.
Appearing on CNBC’s Mad Money, Jim Cramer was unequivocal in his assessment. He designated Intel as his “new favorite stock in this market” and emphasized the increasing CPU demand as agentic AI infrastructure expands. Tan has projected that the ratio could reach four CPUs for each GPU deployed — a proportion that Cramer characterized as “incredible” for Intel’s fundamental operations.
Intel has verified that it has initiated volume production using its 18A-P manufacturing process. Should this technology prove successful, it could enable the company to win foundry business from Apple. Additionally, Elon Musk’s Terafab initiative has been identified as an Intel foundry customer.
Foundry Operations Take Spotlight
A critical element of the bullish investment thesis centers on Intel’s foundry division. Under previous leadership, the corporation invested heavily in fabrication facilities that encountered operational challenges. Tan, who brings an engineering background, has reportedly addressed these technical obstacles.
Organizations seeking to diversify away from Taiwan Semiconductor Manufacturing Company are progressively exploring domestic alternatives. This geopolitical dimension has become a compelling element of Intel’s foundry value proposition.
Broader market conditions provided additional support. The Federal Reserve maintained its benchmark rate range at 3.50%–3.75%, while a diplomatic agreement between the US and Iran boosted investor risk appetite. The Nasdaq composite climbed 1.9% and the S&P 500 advanced 1.1% during the session, providing favorable conditions for technology stocks.
AMD and Nvidia also experienced gains from the optimistic sentiment surrounding AI semiconductor demand, though Intel’s convergence of multiple catalysts made it the most dramatic performer among the semiconductor leaders.
The commencement of Intel’s 18A-P production and the developing Apple foundry collaboration story remain the two critical factors investors will monitor as trading continues in upcoming sessions.
